How to Pay Back a Loan with Cost of Goods Sold
We received a Question from
"Shannon Carter" in our MegaNiche Channel
I have a customer in Quickbooks who gave my company a business loan without interest. I am paying them back in fuel($3.50/gal). So when they fuel up I’ve been keeping track of the loan by having a credit memo under their customer account, and making invoices to put against the credit memo. How can I set up a loan but have it be paid off by trading fuel? If I can’t do that, is there another way to keep track of the loan and fuel without writing checks for the loan? Thanks for your help.
It all comes down to Journal Entries.
You will have to at some point Credit Cost of Goods Sold and Debit Loans Payable.
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